Coinstar, Inc. announced results for the three months ended March 31, 2007.
Highlights for the three months ended March 31, 2007, were as follows:
— Revenue – $132.3 million
— EBITDA – $ 26.8 million (see Appendix A)
— Free cash flow – $3.6 million (see Appendix A)
— Adjusted earnings per fully taxed, fully diluted share – $0.16 (see reconciliation below)
— Net income – $2.6 million
Included in GAAP net income for the first quarter of 2007 were certain non-cash charges including $1.7 million in amortization of intangible assets, $1.7 million in non-cash stock based compensation and $0.2 million related to the Company’s portion of non-cash losses associated with investments in DVD kiosk companies and amortization of financing fees. Excluding these items, net of taxes, Coinstar reported adjusted net income of $4.6 million. A reconciliation of GAAP earnings per share to adjusted earnings per share is as follows:
pre.
Three Months Ended
3/31/07
——————
GAAP fully taxed, fully diluted earnings per share $ 0.09
Amortization of intangibles, net of tax 0.03
Stock based compensation expense, net of tax 0.03
Non-cash losses in investments in DVD kiosk
companies and amortization of
financing fees, net of tax 0.01
——————
Adjusted fully taxed, fully diluted earnings per
share $ 0.16
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At March 31, 2007, Coinstar had approximately $61.6 million in cumulative net operating loss carryforwards. Although Coinstar recorded $2.6 million in tax expense for the first quarter, as a result of these net operating loss carryforwards, cash paid for taxes during the three-month period totaled only $627,000.
“We’re pleased with our first quarter performance. Coin processing, our DVD kiosk ventures and our e-payment business experienced solid progress during the period while our money transfer unit experienced a significant increase in transaction volume. These gains were partially offset by continued softness in our entertainment business,” Dave Cole, Chief Executive Officer of Coinstar, Inc. stated. “Major integration efforts are behind us and we are seeing the early benefits from a more cohesive infrastructure. We are confident that we’ll continue to capitalize on our leadership position as a turnkey, 4th Wall solutions provider.”
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Other Information
Three Months Ended Three Months Ended
3/31/07 3/31/06
—————— ——————
Cash paid for capital
expenditures (in thousands) $ 18,126 $ 7,417
Installed Base
Coin 13,800 13,000
– Coin to card, e-payment or
e-certificate enabled 8,500 6,100
Crane 30,000 30,000
Bulk heads and other 269,000 266,000
POSA terminals 14,000 19,500
Share Repurchase
During the first quarter, Coinstar repurchased 120,800 shares of common stock at an average price of $28.94 per share. The aggregate expenditure for the period totaled $3.5 million. For the remainder of 2007, Coinstar expects to be active in the repurchase of its shares subject to market and other conditions.
Second Quarter Expectations
Management estimates that revenue for the second quarter ending June 30, 2007, will range from $130 million to $140 million. In addition, management estimates that for the second quarter GAAP earnings per fully taxed, fully diluted share will range from $0.08 to $0.15 with adjusted earnings per fully taxed, fully diluted share ranging from $0.15 to $0.22.
Conference Call
A conference call to discuss first quarter 2007 results will be broadcast live over the Internet today, Thursday, May 3, 2007, at 5:00 p.m. Eastern Time. The Webcast will be hosted at the About Us – Investor Relations section of Coinstar’s Web site at www.coinstar.com.
About Coinstar, Inc.
Coinstar, Inc. (NASDAQ:CSTR) is a multi-national company offering a range of 4th Wall(TM) solutions for the retailers’ front of store consisting of self-service coin counting, electronic payment solutions, entertainment services, money transfer and self-service DVD rental. The company’s products and services can be found at more than 60,000 retail locations including supermarkets, drug stores, mass merchants, financial institutions, convenience stores and restaurants.
For complete details on Coinstar’s latest results visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
